A case study of Wal-Mart in enterprise strategic management

Introduction: In a standardized and orderly market environment, enterprises must have a clear strategy if they want to win in the competition and achieve long-term development. The following is a case study of Wal-Mart, which I brought to you. I hope it will help you.

enterprises without strategy can usually only focus on the present, and are tired of operating for short-term material benefits, and often end up disappearing. Strategy defines and determines the core competitiveness of an enterprise, making it clear what kind of structure it needs to build, what kind of culture it needs to build, and how to attract and train talents. Strategy comes from the mission and vision of the organization. Only by first clarifying the fundamental reason and value of the organization, foreseeing and gradually clarifying the target state that the organization wants to achieve, can the corresponding strategy be formulated.

strategy itself is a kind of conception, a forecast of the future and a guide to the present. The strategic conception of an enterprise is usually formed in the leader of the enterprise; On the basis of understanding the mission and vision of the enterprise, they comprehensively consider the external political, economic and social environment of the enterprise and the present situation of the enterprise, and make strategic analysis through a series of non-causal logical and nonlinear thinking, so as to determine the strategy of the enterprise. After the strategy is formulated, we need to consider how to implement it.

strategy is usually expressed in the form of goals; Because the goal is visible and easy to convey and understand, so that all members of the enterprise can work towards the same thing, in order to realize the strategic intention of the leader. However, in reality, even if an enterprise has a good strategy and has formulated corresponding goals, it is often difficult to implement it. Such examples are common. What are the reasons? There are many factors that affect the implementation of the strategy, including the change of external environment, the quality of enterprise members, corporate culture, etc. From the perspective of the goal itself, whether it can be effectively delivered is an extremely important prerequisite for the implementation of the strategy. It is not difficult for us to understand why Drucker proposed it. Management by objectives? (Management By Objects) can become a concept with far-reaching influence in the history of management.

in 1955, when fortune, a famous American financial magazine, was first published? Fortune 5? At the time of the ranking, it was still in its infancy. After decades of hard work, it was listed in Fortune in 22, 23 and 24. Fortune 5? The first. It is casting? Global business myth? American Wal-Mart Retail Chain Group.

It's hard to believe the brilliant achievements of Wal-Mart, which grew from nothing to monopolizing the company for only a few decades. In 194, the founder of Wal-Mart, Sam? Sam Walton received a bachelor's degree in economics from the University of Missouri; Walton served in the Army Intelligence Corps during World War II. Sam in 195? Wharton opened a store name in Bentonville, Arkansas, USA? 5-1 cents Our cheap shop is just a little-known small local enterprise. In 1962, Wal-Mart opened its first chain store, and in 197, it established its first distribution center, which embarked on the road of rapid development. In 1983, the first Sam Club was established. In 1988, the first Wal-Mart Supercenter was opened. In 1991, Wal-Mart's annual sales exceeded $4 billion, making it one of the largest retail enterprises in the world. According to the classified ranking of service industries in the United States published by Happiness magazine in May 1994, Wal-Mart's sales in 1993 reached US$ 67.34 billion, an increase of more than 11.8 billion over the previous year, surpassing Sears, which ranked first in 1992, and ranked first in the retail industry in the United States. In 1995, Wal-Mart's sales continued to grow and set a world record for the retail industry, achieving annual sales of 93.6 billion US dollars, ranking fourth in Fortune magazine's 95 list of the largest enterprises in the United States. In fact, Wal-Mart's annual sales are equivalent to the sum of all department stores in the United States, and it still maintains a strong development momentum.

As of April 15th, 21, the company has 4,249 chain stores at home and abroad, which are divided into four forms: discount stores, shopping malls, Sam member stores and home stores, all of which are controlled by the company, and direct chain stores are implemented. All over the United States, Mexico, Canada, Puerto Rico, Brazil, Argentina, South Africa, China, Indonesia and other places. It has developed so rapidly in just a few decades that it has to be said to be a miracle of the retail industry. Let's take a look at how Wal-Mart made this miracle.

1. Customer orientation

Wal-Mart firmly believes that? Customer first? Is the essence of its success. In 1985, he was listed as the richest man by Forbes magazine, the winner of the US Presidential Medal of Freedom in 1992, and the founder of Wal-Mart's huge business, Sam? Walton said this: There is only one boss, and that is our customer. It is he who pays us a monthly salary, and only he has the right to fire everyone from the chairman. The reason is simple, as long as he changes his shopping habits and goes to another store to buy things. ? Wal-Mart's business premises are always marked with its business creed: Article 1: The customer is always right; Article 2: If in doubt, please refer to Article 1. ?

Wal-Mart's concept of serving customers is not limited to signs and slogans, but also goes deep into business service actions. The corridors and lighting in Wal-Mart stores are designed to make customers more comfortable. The greeters in front of the store are more active and enthusiastic than other peers; Cashiers always stand and work to show respect for customers; When any customer is 3 meters away from the salesperson, the salesperson must face the customer, smile, take the initiative to say hello and ask? Is there anything I can do for you? Wal-Mart tries to make customers feel at every chain store? This is their shop? Will you get it? Attentive and sincere reception? To ensure that? Meet customers' needs without discount? . It is this customer-oriented bit by bit that has won Wal-Mart's customers' goodwill and trust.

Second, low prices every day

Wal-Mart has always paid special attention to price competition and has long pursued the business policy of small profits but quick turnover. Walton's famous saying is:? A commodity costs 8 cents. If the price is listed in 1 yuan, the sales volume is three times that of 1.2 yuan. I don't earn much on a commodity, but if I sell more, I will be profitable? . Therefore, Wal-Mart put forward a resounding slogan:? The goods sold are always at the lowest price? . Among similar products, the price of Wal-Mart is 5% lower than that of Kmart, one of its biggest competitors. However, maintaining long-term low prices is not an easy task. Wal-Mart's long-term price advantage also benefits from its effective cost control.

1. strive for low purchase price. Wal-Mart avoids all intermediate links and buys goods directly from factories. Its strong economic strength makes it have strong bargaining power. More importantly, Wal-Mart does not increase its profits by wantonly damaging its suppliers because of its large scale and strong strength, but attaches importance to establishing friendly and harmonious cooperative relations with suppliers and protecting their interests. Wal-Mart offers suppliers far more preferential treatment than its peers. Kmart, the third largest retailer in the United States, pays for the goods it supplies in an average of 45 days, while Wal-Mart only pays in an average of 29 days, which greatly stimulates the enthusiasm of suppliers to establish business with Wal-Mart, thus ensuring the optimal purchase price of Wal-Mart products.

2. Perfect logistics management system. Wal-Mart is known as the leader of the retail distribution revolution. Its unique distribution system has greatly reduced the cost, accelerated the inventory turnover and become? Low price every day? The most powerful support. Wal-Mart's inventory replenishment method is called? Cross loading and unloading method? . This set? Non-stop delivery Our supply system consists of three parts:

efficient distribution center. Wal-Mart suppliers send goods to Wal-Mart's distribution center according to the orders of each branch, and the distribution center is responsible for the screening, packaging and sorting of goods. Wal-Mart's distribution center has highly modern mechanical facilities, and 85% of the goods sent here are processed by machinery, which greatly reduces the cost of manual processing of goods. At the same time, due to the huge number of purchased goods, the automation machinery and equipment can be fully utilized, and the scale advantage is fully displayed.

a rapid transportation system. Wal-Mart's motorized transport fleet is another incomparable advantage of its supply system. By 1996, Wal-Mart had 3 distribution centers and more than 2, trucks, which ensured that the time from the warehouse to any store did not exceed 48 hours. Compared with other stores in the same industry, Wal-Mart could ensure that the shelves of branches were replenished twice a week on average. Fast delivery enables Wal-Mart stores to maintain normal sales even if they only maintain very little inventory, thus greatly saving storage space and expenses. Due to the effective operation of this rapid transportation system, 85% of Wal-Mart's goods are transported through its own distribution center, while Kmart only has 5%. As a result, Wal-Mart's sales cost is 2-3% lower than the average sales cost of the same industry, which has become a solid cornerstone of Wal-Mart's annual low-price strategy.

advanced satellite communication network. The satellite communication network system established with huge investment makes Wal-Mart's supply system more perfect. The application of this system enables distribution centers, suppliers and every point of sale of each branch to form an online operation, which can be completed in just a few hours? Fill in the order? Order summary of each branch? Send an order? The whole process has greatly improved the efficiency and accuracy of business.

3. Effective control of marketing cost. Wal-Mart has strict control over marketing costs. Wal-Mart's advertising expenditure is only one-third that of Sears, the second largest chain store in the United States, and its sales per square foot is twice as high as that of Kmart, the third largest chain store in the United States. Wal-Mart's marketing cost accounts for only 1.5% of its sales, and the loss rate of goods is only 1.1%, while the average of these two indicators in general American retail stores is as high as 5% and 2% respectively. All these have further strengthened Wal-Mart's ability to implement the low-price strategy.

third,? One stop? New shopping concept

In Wal-Mart, can consumers experience it? One stop? Shopping (One? Stop Shopping) new concept. In terms of commodity structure, it strives to be rich in variety and characteristics to meet the various preferences of customers. Its business projects are various, including food, toys, new clothes, cosmetics, household appliances, daily necessities, meat, fruits and vegetables and so on.

In addition, Wal-Mart has set up a number of special service types for the convenience of customers:

Free parking. For example, the Sam store in Shenzhen has a business area of more than 12, square meters and nearly 4 free parking spaces, while another Wal-Mart shopping plaza with a business area of more than 17,8 square meters also has about 15 parking spaces.

Wal-Mart has moved the pastry shop into the shopping mall, and it has more? Sam Leisure Corridor? All the delicious food and fresh cakes give customers leisure enjoyment after shopping.

Professionals are employed in the store to consult customers about computers, cameras, video recorders and related products for free, which helps to reduce the risks brought by blind purchase.

There is a Lancashire document processing business center in the store, which can provide customers with many services, including making and copying color documents, enlarging and reducing engineering drawings, and printing at high speed.

Wal-Mart can provide delivery service for a purchase of 2, yuan or more, and make every trip to 49 yuan within the specified range (because the delivery cost is not included in the commodity price).

In addition, Shenzhen Sam Store handles all mobile computer sales business, and all models sold by the Mobile Bureau. Prices are cheaper than other agency outlets in 1 yuan; It also sells the communication products of Runxun as an agent, and collects the Taiwan fees of various models. All kinds of Chinese machines and digital machines are cheaper than other Runxun outlets in 5 yuan.

In the choice of store location, Wal-Mart also takes convenience for customers to shop as the primary consideration. In the United States, its tentacles extend to remote small towns that Sears and Kmart disdain. From Minnesota to Mississippi, from Southern California to Oklahoma, Wal-Mart is everywhere. As long as there is a shortage of cheap shops in any township, Wal-Mart will open there.

iv. motivating employees

employees' interests are closely related to wal-mart. In addition to linking wages and bonuses to employees' own work performance, Wal-Mart also implements the system of employees' shareholding and profit sharing. Wal-Mart employees are partners and insist that employees benefit from the growth of the company. Wal-Mart's largest shareholder is the employee dividend trust fund. In 1977, the fund was only $4.4 million, and by 1983 it had reached $98.5 million. With the growth of Wal-Mart, the fund has also been increasing. In 1982, Wal-Mart paid every employee a bonus equivalent to 5.6% of their annual salary. In addition, employees of Wal-Mart can use the method of salary deduction to buy company shares, and the company subsidizes 15% of the price. Wal-Mart's stock has been the star of new york Stock Exchange since 198s. From 1977 to 1987, the stock price rose by 2 times. In 1992, the board of directors of Wal-Mart announced the 1th split stock since 1971, and the stock return in 2 years was as high as nearly 4, times. Employees who participated in the stock purchase scheme have been richly rewarded. It is precisely because Wal-Mart is closely related to the interests of its employees that every grassroots store in Wal-Mart has such a sign: The stock price of our company today depends on our work. ?

employees have a strong sense of belonging and pride. Aren't Wal-Mart employees called? EMPLOYEE? , but is called? PARTNER? Or? Colleague (ASSOLIATE). ? Every employee from the president to the shop assistant wears a work card on his left chest, which is printed more prominently except his name? Our employees are different. ? In order to improve staff morale, Wal-Mart also has a series of incentives, such as regional star awards, special regional star honor list, sales competition awards, department store sales honors, loss control awards and so on. The names and photos of the winners are published in the company's publication "Wal-Mart World".

adequate staff training. Wal-Mart hires local people, gives them training and encourages them to ask questions. The company attaches great importance to the training and education of employees, and offers various training courses at headquarters and stores at all levels, taking advantage of evening classes; And there are training organizations such as Walton Retail School and Sam School of Operation, which specialize in training senior managers. Wal-Mart also attaches great importance to improving the business ability of branch managers and has a unique approach. The top management of Wal-Mart does not directly instruct the person in charge of each branch how to do business, but creates an environment for branch managers to learn this lesson from the market and other branches. For example, Wal-Mart's advanced intelligence information system provides branch managers with detailed information about customer behavior. In addition, Wal-Mart also invested in the purchase of a special plane, which regularly takes store managers to the company headquarters.